A federal judge in California denied a motion to dismiss charges for another defendant in the case surrounding the former Gold Club in Myrtle Beach.
David Gaither, along with Vladimir Handl and Michael Rose, are charged with racketeering, conspiracy, conspiracy to possess with intent to distribute cocaine, and various money laundering and bank fraud charges.
Several other former Myrtle Beach businessmen are also facing various charges in this case.
Attorneys for Gaither asked for the charges against him to be dismissed due to outrageous government conduct, however, Judge William Alsup denied the motion.
Previously, Judge Alsup denied a similar motion by several other defendants (see previous article below).
Investigators say Handl, Rose, and Peter Scalise were the main players in the money laundering conspiracy, and Gaither became involved when Rose brought him to a meeting with an undercover FBI agent.
According to court documents, Rose told the agent Gaither was involved in much of the previous money-laundering, as Gaither was the manager of several of Rose’s clubs. In the meeting, documents state Gaither explained that he was formally a crooked police officer, and offered to introduce the group to corrupt law enforcement officers who could help.
A previous court decision states that to have a case dismissed due to outrageous government conduct, it must be “so grossly shocking and so outrageous as to violate the universal system as justice” (United States v. Holler).
In his decision, Judge Alsup mentions that he previously denied the motion to dismiss charges based on outrageous government conduct for Handl and Rose. According to the Judge Alsup, “defendant Gaither offers nothing new to support the conclusion that the government acted outrageously towards him”.
You can read the judge’s full response below.